How To Bring Predictability to an Unpredictable Business

Part 3 – Every snow contractor should have a job costing system in place.

Snow Removal Business Tips Plo 10732076
Photo courtesy of Grant & Power Landscaping in Chicago

We have talked about budgeting and the different types of contracts you should implement in order to make for a successful snow operation. There is one more thing you should not forget, which is needed if you really want to measure the success of all of your efforts.

Every snow contractor should have a job costing system in place. That means you have a system for bringing back information “from the field”—such as labor hours and materials used—in addition to a system for processing and analyzing that data.

Why it’s important. A job costing system helps you to determine if your estimating system and practices are correct. Job costing will also allow you to evaluate your operations to help you run more efficiently. Your numbers may be right on the money. However, if your crews are not following your “best practices,” all of the assumptions that you made in the estimating process will be meaningless.

Poor financial management and inefficient operations will put you at risk in the snow business. If you do not have the cash flow to run your business, as you have proposed to your client, then you may be setting yourself up for potential lawsuits. There is no room for error when it comes to snow removal. You made a commitment and you better be able to perform.

Your clients are relying on you to provide quality services, be responsive to their needs, and communicate with them on a regular basis. That is why they hired you and you need to show them that you are a professional. Good business practices are what it takes to assure that that is what happens.